State Street announced a new tokenized fund servicing capability that will be available from Luxembourg by the end of 2026. The service will be delivered through the firm’s Digital Asset Platform and will allow the company to administer, custody and transfer‑agency for tokenized funds alongside its traditional structures within a single institutional operating model.
The launch gives State Street a unified platform that blends conventional and blockchain‑based investment vehicles, enabling clients to manage both types of funds under one roof. By extending its custody and asset‑servicing business to tokenized products, the firm can deepen client stickiness and create new revenue streams.
The decision to launch in Luxembourg is driven by the jurisdiction’s progressive regulatory framework, including the adoption of MiCA and other laws that support digital asset use. The move aligns with a broader institutional demand for tokenization, with many investors expecting digital‑asset exposure to double in the next three years and a significant portion anticipating tokenized investments by 2030. “This announcement reflects our progress in building infrastructure that enables digital and traditional assets to operate together within a unified institutional framework,” said Angus Fletcher, global head of Digital Asset Solutions.
State Street’s assets under custody and administration total $54.5 trillion, while assets under management amount to $5.6 trillion. These figures underscore the firm’s scale and its capacity to support the new tokenized fund servicing capability, reinforcing its competitive moat against other custodians and fintech entrants pursuing tokenization.
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